Contemporary Art - Buying For Pleasure, Buying For Profit

With the internet making it easier than ever to source artworks, it's relatively simple these days to build up a great-looking collection.

While prices for unique works are increasingly beyond the reach of many, limited editions of, say, 150 plus are financially and widely accessible, making it possible to acquire pieces by major artists for reasonable prices.

There can be a downside, however. While little beats the pleasure a signed work can bring, generally speaking, the larger an edition, the less likely it is to appreciate in value quickly - or even substantially.

Nevertheless, the contemporary art market is full of contradictions, and with growing demand at all levels, recent trends have often seen this assumption overturned.

As an obvious example, Damien Hirst's early prints for Eyestorm consistently fetch $10000-$16000 at re-sale, a very substantial profit on their original price. More recently, prints by Banksy and other urban artists have proved equally lucrative.

In other words, it's becoming increasingly possible - although by no means a certainty - to make profits quickly with relatively little outlay; although the trick, as always, is knowing what to buy and when to sell.

Buying for fast profit

The art world has a curious attitude to speculation. Buying and selling purely for profit is still regarded as just a little unsavory, even though the entire art market is dedicated to this pursuit. Perhaps it's because art has such a curiously dual nature, combining aesthetic and cultural worth with a commercial value that can reach very high sums indeed.

Whatever the case, it would be difficult to consistently make money from art without some genuine appreciation and an insight into what will stand the test of time. And many dealers are themselves collectors, at least partly funding their own acquisitions through trading.

Yet it's certainly true that, with contemporary art consistently showing remarkable returns on investment, it's also become an attractive proposition to a very wide range of buyers.

In general, non-specialist speculators often trade in the work of artists whose frequent media coverage makes them well known to the public. And as shown by the two examples mentioned above - Hirst and Banksy - this can certainly reap substantial rewards.

Source : ezinearticles